After the Celsius Network’s decision last month to freeze all transactions and withdrawals, the whole cryptocurrency market plummeted into a deep and gloomy sinkhole.
Good news! Celsius has paid $41.2 million to the MakerDAO for its outstanding debt. Celsius received $448 million as collateral in this settlement.
It appears, however that this is the only positive change from U.S. cryptocurrency lender over the next few days or months.
After weeks of conjecture and hearsay, Celsius’s legal counsels have formally informed regulators that the cryptocurrency lender has filed for Chapter 11 bankruptcy protection.
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CEL’s value drops by half after bankruptcy news
CEL (the native cryptocurrency of Celsius Networks) lost half of its value after the bankruptcy disclosure. It was at its intraday highest of 95 cents. Now it is down to 45 cents.
In the last month, there has been an increase in the number of cryptocurrency-related failures. Celsius will be the next victim to the bankruptcy rotor after Three Arrows Capital’s crypto hedge fund and Voyager Digital the crypto lender.
Since June 20, the price of CEL has nearly grown four-fold due to what appears to be a fervor caused by futures and derivatives traders. CEL rose from $0.28 on June 15 to $1.56 on June 21, a 456 percent increase compared to the market’s 12.36 percent increase during the same timeframe.
Celsius only had $12 billion of assets in May. That’s about half its total at the beginning of this year. The firm stopped revealing assets under management (AUM) after that.
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Source: TradingView.com| Source: TradingView.com
Celsius Was A Crypto Industry Superpowerhouse
CEL is still under severe pressure as its price remains around 80% lower than the $8.4 million it reached in April 2018.
Celsius was an industry giant in cryptocurrency at its peak. It had more than 1.7 million users worldwide and assets of more than $20 billion. Investors received yields of around 18%, which was a major factor in its success.
The CEL token is what? CEL’s value has dropped significantly since Celsius stopped operations. This does not, however, imply that the token will plunge to zero. This could bring it renewed attention from pump and dump traders.
Meanwhile, Celsius asserts that it has $167 million in ready cash, which will be used to support some operations “during the reorganization process.”
Featured image taken from CoinQuora. Chart taken from TradingView.com